ETS MAJOR FIELD TEST IN BUSINESS PRACTICE 2024 QUESTIONS WITH CORRECT ANSWERS ALREADY PASSED AND VERIFIED

In marketing research, a firm might consider using secondary data over primary data because a) secondary data usually cost less b) secondary data are usually more accurate c) primary data are usually non specific d) primary data are likely to be outdated - CORRECT ANSWER a) secondary data usually cost less In organizational decision making, managers are able to exercise the greatest degree of discretion in the a) enforcement of internal policies b) settlement of legal disputes c) restructuring of outstanding loans d) compliance with federal regulations - CORRECT ANSWER a) enforcement of internal policies The term "net working capital" refers to (A) inventories, receivables, and current notes and investments (B) assets divided by liabilities (C) current assets less short-term liabilities (D) net assets left over after subtracting cost of goods sold - CORRECT ANSWER (C) current assets less short-term liabilities Dreamland Pillow Company sells the "Old Softy" model for $20 each. One pillow requires two pounds of raw material and one hour of direct labor to manufacture. Raw material costs $3 per pound and direct production labor is paid $4 per hour. Fixed supervisory costs are $2,000 per month and Dreamland rents its factory on a five-year lease for $4,000 per month. All costs are considered costs of production. How many pillows must Dreamland produce and sell each month to earn a monthly gross profit of $1,000? (A) 300 (B) 350 (C) 600 (D) 700 - CORRECT ANSWER (D) 700 VC = (2 lbs*$3)+$4 = $10 FC = $2,000+$4,000 = $6,000 CM per unit = $20-(VC) $10=$10 $1,000 = (units sold*$10)-$6,000 Units sold = ($1,000+$6,000)/$10 = 700 pillows Dreamland Pillow Company sells the "Old Softy" model for $20 each. One pillow requires two pounds of raw material and one hour of direct labor to manufacture. Raw material costs $3 per pound and direct production labor is paid $4 per hour. Fixed supervisory costs are $2,000 per month and Dreamland rents its factory on a five-year lease for $4,000 per month. All costs are considered costs of production. Another firm has offered to produce "Old Softy" pillows and sell them to Dreamland for $12 each. Dreamland cannot avoid the factory lease payments, but can avoid all labor costs if it does not produce these pillows. Under these conditions, how many "Old Softy" pillows must Dreamland sell to earn monthly gross profits of $1,000? (A) 417 (B) 500 (C) 625 (D) 875 - CORRECT ANSWER (C) 625 Dreamland VC per unit = $12 FC = $4,000 CM per unit = $20-(VC) $12=$8 (GP) $1,000 = (units sold*$8)-$4,000 Units sold = ($1,000+$4,000)/$8 = 625 pillows Which of the following statements about a systems flowchart is true? (A) It is used in systems design to define and describe each piece of data. (B) It is a method of writing programs using only three basic constructs: sequence, selection, and repetition. (C) It documents the sequence of processing steps that take place in an information system. (D) It documents the logical design of an information system. - CORRECT ANSWER (D) It documents the logical design of an information system. Which of the following statements about the tort of negligence is true? (A) It cannot be used as a basis for liability for defective products. (B) It is a strict liability tort with no defenses. (C) It requires proof of some intentional conduct. (D) It requires proof of breach of a statutory or common-law duty. - CORRECT ANSWER (C) It requires proof of some intentional conduct.